Nexon First Quarter 2015 Financial Results

Key insights

6 takeaways

01
Nexon reported Q1 2015 total revenues of 52.0 billion yen, a 9% year-over-year increase driven by strong performance in China and Korea.See it on page 1
02
Net income attributable to owners of the parent grew 15% to 18.5 billion yen, while operating income rose 5% to 22.2 billion yen.See it on page 1
03
Mobile game revenues reached 8.4 billion yen, marking a 16% increase, while native game revenues grew 2.8 times compared to Q1 2014.See it on page 1
04
PC online game revenues accounted for 43.6 billion yen of the total, representing an 8% increase over the previous year.See it on page 1
05
Strategic growth initiatives include a co-development deal with Square Enix for a mobile Final Fantasy XI and a collaboration with Tencent for a mobile version of Dungeon&Fighter in China.See it on page 1
06
Management projects Q2 2015 revenues between 40.3 and 43.0 billion yen, with mobile revenues expected to contribute between 10.2 and 11.2 billion yen.See it on page 1

Summary

Nexon’s financial performance for the first quarter of 2015 demonstrates a successful execution of its strategic focus on high-quality game development and expansion within the free-to-play market. The company reported total revenues of 52.0 billion yen, representing a 9% increase year-over-year. This growth was primarily driven by strong performance in China and Korea, particularly during the Lunar New Year high-season, alongside effective item sales and updates for key titles like Dungeon&Fighter.

Financial results across segments showed consistent growth, with PC online game revenues reaching 43.6 billion yen, an 8% increase from the previous year. Mobile game revenues saw a more significant rise of 16%, totaling 8.4 billion yen, while native game revenues experienced substantial growth, increasing 2.8 times compared to the same period in 2014. Operating income rose 5% to 22.2 billion yen, bolstered by higher-than-expected revenues and disciplined management of marketing and human resources expenses. Net income attributable to owners of the parent grew 15% to 18.5 billion yen.

Looking ahead, the company maintains a positive outlook, supported by strategic partnerships such as the co-development deal with Square Enix for a mobile version of Final Fantasy XI and the collaboration with Tencent for the mobile release of Dungeon&Fighter in China. Following the launch of DomiNations in the U.S. and Europe, management expects continued momentum throughout the remainder of 2015. The company’s financial guidance for the second quarter of 2015 projects revenues between 40.3 and 43.0 billion yen, with mobile revenues expected to contribute between 10.2 and 11.2 billion yen.